Home News Company in the news

Jardine minority shareholders oppose US$1 bil 'discount' in buyout plan

Bloomberg
Bloomberg3/11/2021 4:50 PM GMT+08  • 4 min read
Jardine minority shareholders oppose US$1 bil 'discount' in buyout plan
Some shareholders are asking Bermuda courts to assess Jardine Strategic's fair value.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

Opposition from minority shareholders to a restructuring effort by the Jardine Group is growing, with some investors considering going to court over its plan to buy out a London and Singapore-listed unit for what they say is a US$1 billion ($1.34 billion) discount.


See: Jardine Matheson Holdings to acquire remaining stake in Jardine Strategic for US$5.5 bil; Jardine Strategic shareholders to receive US$33 per share

Some shareholders are considering asking courts in Bermuda, where Jardine Strategic Holdings Ltd. is incorporated, to assess its fair value, said an advisor to the investors, in a bid to make Jardine Matheson Holdings Ltd. raise its acquisition price.

Jardine Matheson on Monday said it planned to acquire the 15% of Jardine Strategic it doesn’t own for US$5.5 billion in cash, representing US$33 per share.

While the amount is at a 20% premium to Friday’s closing price of Jardine Strategic, it’s a discount of at least 20% to the value of the company’s listed assets, according to Justin Tang, head of Asian research for United First Partners, which advises investors who hold some 2 million of the firm’s shares.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.